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[From  the  New  York  “ Iron  Age."] 


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THE 

COST  OF  IRON  & THE  PRICE  OF  LABOR. 

THIRD  EDITION — Revised  and  Enlarged. 


Printed  for  the  Eastern  Iron  Masters’  Association. 


We  publish  below  a very  interesting  letter,  and  valuable  sta- 
tistics, from  Mr.  Wm.  E.  S.  Baker,  of  Philadelphia,  Secretary  and 
Treasurer  of  the  Eastern  Iron  Masters’  Association,  and  Secretary 
of  the  Duncannon  Iron  Co.,  upon  the  present  condition  of  the  pig 
and  bar  iron  production,  and  the  prices  of  labor,  co-operation,  &c. 

Philadelphia,  June  19,  1871. 

Editor  ‘ Iron  Age New  York — Dear  Sir: — Covered  herein,  please 
find  tables  of  the  cost  of  ore,  coal,  limestone  and  labor  to  the  ton  of  pig 
iron,  together  with  that  of  all  contingencies,  showing  the  total  cost  of 
pig  iron  at  the  furnace  bank  from  1850  to  1871,  inclusive,  and  also  the 
details  of  the  cost  of  bar  iron  at  the  mill  for  the  same  period.  These 
figures  speak  for  themselves,  and  are  perfectly  reliable.  The  facilities 
for  compiling  them  show  what  advantages  are  likely  to  ensue  from 
frequent  meetings  of  our  new  Iron  Masters’  Association,  by  spreading 
before  its  members  useful  information  concerning  the  iron  business. 
In  the  accompanying  statistics  the  items  of  pig  iron  cost  are  averaged 
from  a group  of  furnaces  in  Central  Pennsylvania,  close  to  coal  and 


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ore.  The  merchant  bar  iron  cost  is  the  average  of  mills  in  the  Schuyl- 
kill region,  not  far  from  pig  iron,  but  more  distant  from  soft  coal.  The 
average  for  both  pig  and  merchant  bar  iron  is  below  the  average  cost  for 
the  whole  State  of  Pennsylvania , and  in  neither  case  is  there  any  charge 
included  for  interest  on  Capital  Stock.  A ton  of  raw  materials,  ore, 
coal  or  limestone,  will  cost  in  the  ground , but  a trifle  more  to-day  than 
it  did  twenty-five  years  ago,  while  the  total  cost  of  pig  iron  has  more 
than  doubled  in  that  period,  showing  that  nearly  the  whole  of  the  in- 
creased cost  is  for  labor — labor  in  mining,  in  transportation,  and  in 
working  the  materials  into  the  saleable  product.  So  that  while  in 
Pennsylvania,  pig  iron  is  costing  about  $29.00  a ton,  in  Great  Britain  the 
cost  is  less  than  half  of  that , and  even  then  yields  a profit  to  the  manu- 
facturer. The  reason  of  this  is,  because  of  the  difference  in  the  cost  of 
labor.  And  but  a small  part  of  this  difference  can  be  accounted  for  by 
the  increased  cost  of  living,  arising  from  taxation  or  a depreciated  cur- 
rency. Hence  a question  here  arises  of  vital  importance  to  every 
manufacturer  and  workman  in  the  United  States,  viz.:  Is  it  possible 

for  two  countries  so  intimately  related  in  business  as  are  Great  Britain 
and  the  United  States , to  continue  for  a long  period  to  produce  the  same 
article  at  so  great  a difference  in  cost?  We  think  not,  and  believe  that 
there  must  and  will  be  an  approximation  of  cost  in  the  two  countries, 
either  by  a reduction  in  wages  paid  American  skilled  labor,  or  an  ad- 
vance in  foreign  labor,  unless  home  labor  shall  have  increased  protection 
from  the  Government.  An  advance  in  labor  abroad  will  be  but  to  lessen 
the  profits  of  the  wealthy  iron  masters.  To  reduce  labor  in  this  coun- 
try, where  it  is  conceded  that  the  iron  manufacturers  are  making  little 
or  no  profit,  will  be  to  decrease  the  comforts  and  privileges  of  the 
workmen.  The  alternative  will  be  for  home  capital  to  abandon  the 
iron  manufacture  for  some  more  stable  and  profitable  branch  of  indus- 
try, to  the  depreciation,  if  not  ruin  of  the  agricultural  and  other  sur- 
rounding interests  depending  upon  iron.  Twenty-five  years  ago  our 
cost  price  was  about  what  the  English  cost  is  to-day.  But  the  physi- 
cal, moral,  social  and  mental  condition  of  the  American  workman  has 
much  improved  since  then.  He  is  a free  citizen  of  a great  Eepublic, 
with  duties  and  responsibilities  unknown  abroad.  His  wants  have 
multiplied,  and  his  increased  pay  has  enabled  him  hitherto  comfortably 
to  meet  all  demands.  Our  sympathies  are  with  him,  and  we  desire 


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him  to  receive  his  full  share  of  the  advantages  of  the  business,  but  it 
can  hardly  be  contradicted  that  his  present  prosperity  is  at  the  expense 
of  capital , the  manufactured  article  having  declined  in  price  much  more 
in  proportion  than  the  price  of  skilled  labor. 

The  contrast  between  the  condition  of  our  mechanics  and  workmen 
twenty-five  years  ago,  and  at  the  present  day  will  show  so  marked  an 
improvement  as  greatly  to  encourage  the  friends  of  progress.  Then, 
the  workingman  lived  in  a one-storied  shanty;  to-day,  the  Building 
Association  gives  the  temperate,  steady  man,  at  small  cost,  a comforta- 
ble and  convenient  home.  His  dress  was  of  the  coarsest  material,  and 
his  food  limited  to  the  plainest  dishes ; but  liberal  wages  enable  him  to 
clothe  his  family  respectably,  and  to  supply  his  table  not  only  with  ne- 
cessaries, but  luxuries.  His  mind  was  contracted,  and  he  was  very 
ignorant ; but  free  schools  have  educated  him,  and  made  some  of  his 
children  professors  of  learning,  while  others  occupy  the  most  honora- 
ble positions  in  the  land.  He  could  seldom  read,  much  less  afford  to 
buy  a daily  newspaper ; to-day,  his  own  sons  edit  and  publish  those 
papers,  spreading  before  him  the  world’s  record  of  the  past  day  before 
his  work  begins.  He  had  neither  surplus  means  nor  suitable  clothing 
with  which  to  travel;  now  he  can  afford  to  take  his  seat  in  the  rail  car, 
the  peer  of  the  greatest.  A few  months’  sickness  or  lack  of  employ- 
ment reduced  him  to  beggary ; in  this  age,  his  saving  fund  deposit,  or 
lodge,  relieves  him  ; while  a physician  of  his  own  selection  attends  his 
family,  and  he  is  surrounded  with  comforts,  privileges  and  blessings 
unknown  to  his  father.  His  moral  nature,  also,  has  undergone  remark- 
able improvement.  The  Sunday-school  has  elevated  him,  given  him 
clearer  ideas  of  responsibility,  opened  new  fields  of  thought,  and 
taught  him  to  abandon  many  vices  and  to  cultivate  the  nobler  faculties 
of  the  soul.  Where  once  was  the  card-table  and  the  brewing-tub,  can 
now  be  found  the  melodeon  and  the  sewing  machine.  Temperance,  de- 
bating and  charitable  societies,  literature,  art,  music  and  a free  press 
have  all  helped  in  his  promotion,  and  his  means  enabled  him  in  a man- 
ly, independent  way,  to  participate  in  and  enjoy  his  improved  condi- 
tion. His  son  to-day  is  generally  well  educated,  sometimes  a classi- 
cal scholar — his  daughter  is  often  a young  lady  of  growing  taste  and  re- 
finement. Tens  of  thousands  of  American  workmen  have  advanced 
themselves  to  the  position  of  capitalists , as  all  in  this  country  have  a 


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chance  to  do,  and  energy , sobriety  and  integrity  will  promote  others. 
In  my  judgment,  however,  I fear  that  “Labor  Unions”  are  great 
obstacles  to  his  advancement,  because  the  unskilful  and  unsteady  man 
is  made  by  the  Unions  fully  equal  to  the  best  man  in  the  mills — 
with  the  same  wages  and  privileges.  The  only  true  bond  of  “Union” 
that  will  be  a mutual  benefit  to  capital  and  labor,  is  the  brotherhood  of 
man,  founded  upon  the  broad  principles  of  Christian  charity  and  justice. 
“ All  things  whatsoever  ye  would  that  men  should  do  to  you,  do  ye 
even  so  to  them.” 

I sincerely  wish  that  our  American  workmen,  mechanics  and  miners 
would  appreciate  their  advantages,  and  co-operate  with  their  employers 
for  the  benefit  of  both ; but  they  appear  not  always  to  understand  the 
true  relation  that  should  exist  between  capital  and  labor,  and  in  many 
ways  they  seem  to  be  undermining  the  very  system  which  enabled 
them  to  rise,  and  that  too  with  natural  resources  in  the  United  States 
sufficient  to  supply  the  world  with  iron  and  steel  of  a superior  quality. 
The  American  capitalist  invariably  rejoices  in  the  prosperity  of  Ameri- 
can labor,  and  to  insure  it  contributes  millions  of  dollars  yearly.  Not 
only  are  American  iron  works,  workshops  and  dwellings  the  best 
adapted  in  the  world  to  their  purposes,  but  our  capitalists  have  built 
free  Libraries,  Institutes,  Hospitals,  Colleges  and  Churches  in  every 
State,  spending  their  money  for  the  benefit  of  others,  with  a freedom 
unknown  in  other  countries.  Our  own  Peabody  provided  for  the  London 
poor;  while  Girard,  Vassar,  Cooper,  Cornell,  Stewart,  Pardee,  Packer, 
Crozer,  Askin,  and  a host  of  others,  have  made  princely  donations  to 
these  institutions ; and  the  sons  of  our  industrious  workmen  can  be 
found  in  every  college,  obtaining  gratuitously  the  priceless  boon  of  a 
good  education. 

Now,  for  a moment,  look  at  the  present  condition  of  the  same 
branch  of  labor  abroad.  In  France,  men,  women  and  children  work  in 
the  mines  and  mills,  half  fed,  and  poorly  clothed,  without  culture,  do- 
mestic happiness,  social  enjoyment  or  sufficient  pay — the  wages  of  all 
being  required  to  enable  them  to  live.  The  French  workman  is  little 
more  than  a slave,  bound  for  life  to  one  mill,  unable  to  emigrate,  and 
powerless  to  improve  his  social  condition.  In  Belgium  nearly  the  same 
state  of  affairs  exist,  although  efforts  are  making  to  educate  the  child- 
ren, but  they  have  the  poorest  and  cheapest  living  that  will  maintain 


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life,  and  hence  these  two  countries  can  produce  iron  cheaper  than  any 
other  nation.  In  Great  Britain,  under  the  pressure  of  Christian  ef- 
forts to  improve  the  workmen,  labor  is  better  paid  to-day  than  ever  be- 
fore, but  British  capitalists  are  struggling  to  retain  control  of  the  iron 
markets  of  the  world,  and  to  crush  all  foreign  competition ; and  they 
are  partially  succeeding  in  both,  but  only  by  exporting  iron  of  the 
worst  quality  and  cheapest  cost,  and  by  grinding  the  price  of  labor  down 
to  the  lowest  possible  living  point.  Women  are  found  in  the  mills,  doing 
men’s  work,  at  30  cents  a day,  while  men  labor  for  65  cents  or  less 
and  even  little  children  toil  for  a few  pennies,  to  help  keep  the  family 
above  the  swelling  ranks  of  pauperism.  JSTo  wonder  that  the  British 
workman  is  desponding  and  hopeless.  He  knows  that  he  has  no  chance 
in  the  race  of  life,  and  we  can  but  refer  to  his  straw-roofed  hovel,  his 
black  bread  and  meagre  fare,  the  habitual  drunkenness  of  himself  and 
often  of  his  family  ; his  ragged,  uneducated  and  vicious  children,  his 
ignorance  and  gross  superstition,  his  abject  poverty  and  depend- 
ence, his  deeply  seated  vices  and  often  his  fearful  crimes!  This  is  a 
dark  picture,  and  God  forbid  that  American  workmen,  by  low  wages 
and  unsteady  employment,  should  ever  be  so  reduced.  And  yet  we  can 
not  be  blind  to  the  fact  that  the  whole  tendency  of  things  to-day  is  to- 
wards a reduction  in  the  price  of  labor.  It  is  evident,  therefore,  that 
home  products  can  not  compete  with  the  products  of  foreign  labor, 
while  home  labor  receives  twice  the  pay  for  the  same  work. 

I claim  that  every  man  is  entitled  to  education,  domestic  comfort, 
freedom  of  person  and  liberty  of  conscience — and  he  has  a right  to  suf- 
ficient wages  to  secure  and  maintain  himself  and  family  in  these  privi- 
leges of  a freeman  ; and  whoever  denies  these  to  a man  of  industry  and 
integrity  violates  the  plainest  laws  of  humanity  and  of  God. 

It  is  possible  to  effect  some  reduction  in  the  cost  of  American  iron, 
independent  of  the  prices  for  labor,  and  every  thoughtful  man  should 
remember  that  forced  stoppages  of  a mill  by  strikes,  not  only  increase 
the  cost  of  iron,  but  tend  to  destroy  the  business  of  the  mill ; and  if  the 
fear  of  such  stoppages  compel  the  owners  to  keep  on  hand  heavy  piles 
of  finished  goods,  the  cost  is  further  increased  by  loss  of  interest ; and 
further,  there  might  be  less  waste  of  materials,  and  more  care  of  the 
tools  and  expensive  machinery,  and  we  would  like  to  see  a careful 
training  of  apprentices  from  the  workman’s  family,  and  every  means 


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should  be  used  to  improve  the  quality  of  the  iron.  In  Great  Britain  ef- 
forts are  making  to  withdraw  the  women  and  children  from  the  mills 
and  to  improve  the  condition  of  the  workman ; and  that  will  certainly 
advance  the  cost  abroad,  and  help  us  somewhat ; but  to  perpetuate  the 
present  privileges  of  our  workmen,  which  have  been  secured  by  liberal 
wages,  every  man  should  feel  that  he  has  a part  to  do — and  at  once 
change  his  course  towards  his  employer,  cultivate  a friendly  regard  for 
him,  and  save  him  a dollar  wherever  possible. 

When  the  chance  offers,  I would  advise  every  workman  to  buy  a 
few  shares  in  the  Capital  Stock  of  the  company  for  which  he  works,  so 
that,  by  a joint  ownership,  capital  and  labor  may  work  together  in 
harmony  and  peace  for  the  benefit  of  both,  and  thus  reduce  the  cost  of 
iron  down  nearer  to  the  price  of  the  imported  article.  This  sort  of  “ Co- 
operation” would  be  of  great  advantage  to  all  interested,  and  as  our 
special  laws  provide  no  suitable  plan  for  a union  of  capital  and  labor,  it 
would  produce  the  happiest  results,  if  the  workmen  in  any  mill,  to- 
gether with  the  surrounding  artizans,  farmers,  &c.,  would  buy  upon 
long  credits,  payable  by  instalments,  say  one-fifth  of  the  capital  stock 
of  the  company,  with  one-fifth  representation  in  the  Board  of  Directors, 
and  one  fifth  interest  in  all  profits.  A mill  economically  managed  in 
this  way,  with  every  man  in  the  neighborhood  personally  interested  in 
its  success,  (so  as  the  sooner  to  pay  the  debt  due  on  his  stock,  and  get 
full  possession  of  the  certificates) — owning  its  own  store,  dwelling 
houses  and  coal  yard,  and  practically  getting  rent  and  all  supplies  at 
cost,  would  be  one  of  the  most  prosperous  mills  in  the  country , defying 
competition  from  all  quarters. 

The  recent  reduction  of  $2  per  ton  on  the  duty  upon  pig  iron  has 
done  much  to  demoralize  the  iron  business.  Just  about  enough  iron 
has  been  sent  here  at  the  reduced  duty  to  break  down  our  market. 
Nearly  the  whole  $2  a ton  has  been  added  to  the  profits  of  the  aristo- 
cratic manufacturers  of  the  old  country.  Now,  with  a prospective  de- 
cline of  gold  to  par,  and  a threatened  further  reduction  of  the  tariff,  with 
outrageous  evasions  and  violations  of  existing  laws  in  our  custom 
houses,  constant  fluctuations  in  all  values  whenever  it  suits  the  pur- 
poses of  the  gold  gamblers,  and  the  arrival  almost  daily  upon  our  shores 
of  cargoes  of  inferior  foreign  iron,  it  is  not  difficult  to  understand  why 
the  cry  comes  from  every  quarter  of  dull  trade  and  unprofitable  busi - 


7 


ness.  Some  of  us  can  remember  the  dark  days  of  1841  preceding  the 
increased  tariff  on  iron,  when,  to  serve  workmen  from  actual  suffering , 
the  iron  masters  of  Pennsylvania  printed  and  circulated  due  bills,  re- 
deemable months  afterward,  in  amounts  of  10  cents  and  upward.  Free 
trade  did  it  then , and  free  trade  will  do  it  again , carrying  in  its  wake  de- 
vastation and  ruin  to  all  branches  of  home  industry.  We  can  find  a 
remedy  for  all  this  in  an  increased  duty  upon  iron  and  all  other  pro- 
ducts of  foreign  labor  which  compete  directly  with  the  products  of  Ameri- 
can labor.  And  just  here  we  can  remind  our  lawmakers  that  the  Brit- 
ish manufacturers,  with  all  their  free  trade  theories,  are  at  present 
struggling  to  obtain  “protection”  against  the  cheaper  products  of  Bel- 
gian labor.  We  claim  the  same  “ protection n against  the  products  of  the 
pauper  labor  of  Britain.  What  protection  we  now  have  did  not  pre- 
vent the  importation  of  40  per  cent,  of  all  the  iron  consumed  in  the 
United  States  in  1870!  while  some  of  our  American  mills  were  perma- 
nently stopped , and  others  remained  idle  part  of  the  year,  from  inability 
to  compete  with  inferior  foreign  iron.  A continuance  of  the  present 
state  of  affairs  will  soon  prove  the  correctness  of  these  views,  and,  I 
fear,  produce  in  this  country  what  is  to  be  greatly  dreaded,  the  pros* 
tration,  and  perhaps  degradation  of  American  labor. 

Very  respectfully,  &c., 

WM.  E.  S.  BAKER, 

122  Race  Street , Philadelphia. 


COMPARATIVE  PRICES  OF  LABOR-1871. 


English. 

Pudlers,  per  ton $2.05 

“ Helpers,  per  ton 78 

Heaters,  per  day . 1.90 

“ Helpers,  per  day 97 

Rollers,  per  day 3.00 

Day  Laborers,  per  day 78 

Carpenters,  “ 1.40 

Masons,  “ 2.00 


American. 

$4.00 

2.00 

4.37 

2.07 

5.10 

1.75 

3.00 

3.25 


J.  A Wagenseller,  Printer,  23  N.  Sixth  St.,  Philada. 


